Sir Richard Branson is to move a key part of his Virgin empire to Switzerland,
leading to renewed concerns over the business environment in Britain, The
Daily Telegraph can disclose.

The company that owns the rights to the Virgin brand around the world is planning to relocate from London to Geneva in the coming weeks in a move that will reduce its tax bill.

George Osborne has previously championed announcements from companies moving back to Britain and the decision by one of the country’s most well-known entrepreneurs to move a key part of his business abroad is a blow to the Chancellor.

Switzerland and other tax havens have been targeting British companies, financiers and entrepreneurs amid claims that the country’s tax rates are not attractive for multi­national companies.

Virgin Enterprise, which owns the trademarks and rights to the Virgin brand, is moving to Switzerland and is advertising for staff there. Although it is said to be a relatively small part of the business, Virgin insiders said it would become increasingly significant as the brand was franchised around the world.

A source said the decision had been made to maximise “tax efficiency”. Other Virgin businesses, including Virgin Atlantic and Virgin Media, would continue to be based and pay tax in Britain.